Analysis of traffic congestion costs in a competitive supply chain

abstract

• We study a competitive facility location problem with identical suppliers competing in multiple markets subject to distribution network congestion. We first analyze the solution of a symmetric competitive location game and discuss the firms' facility location and equilibrium market supply decisions. Then, we utilize the model to provide analytical characterization of the effects of traffic congestion costs on equilibrium distribution flows. These analytical results permit qualitative characterization of how changes in congestion levels and costs affect equilibrium location and distribution decisions. The results of extensive numerical studies serve to further illustrate the effects of traffic congestion costs on location, market supply quantity, and distribution decisions. 2010 Elsevier Ltd.

authors

• Geunes, Joseph

published proceedings

• TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW

author list (cited authors)

• Konur, D., & Geunes, J.

citation count

• 21

complete list of authors

• Konur, Dinçer||Geunes, Joseph

publication date

• January 2011

publisher

• Elsevier  Publisher

published in

• Transportation Research Part E: Logistics and Transportation Review  Journal

keywords

• Competitive Facility Location Game
• Traffic Congestion Costs

Digital Object Identifier (DOI)

• 10.1016/j.tre.2010.07.005

start page

• 1

end page

• 17

volume

• 47

issue

• 1

URL

• http://dx.doi.org/10.1016/j.tre.2010.07.005